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Coinbase sues SEC, FDIC for clarity on cryptocurrency rules
Cryptocurrency exchange Coinbase filed lawsuits Thursday against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC), alleging unfair targeting and opaque practices.
The legal challenges, filed in the U.S. District Court for the District of Columbia, accuse the agencies of overregulation and failing to respond to Freedom of Information Act (FOIA) requests.
The exchange’s lawsuit seeks to counter what it sees as a concerted effort by the SEC and FDIC to undermine the cryptocurrency industry by restricting access to banking services and withholding information.
Coinbase has criticized the SEC for using privacy claims to obscure its regulatory practices, particularly regarding the transition to proof-of-stake for Ethereum and other crypto entities.
The FDIC is also under fire for advising banks to halt the expansion of cryptocurrency-related services through “pause letters,” a tactic Coinbase compares to the controversial “Operation Choke Point.”
Coinbase’s dispute with the SEC also includes a previous lawsuit from April 2023, where the exchange demanded a definitive position on crypto-specific regulations.
Despite discussions since July 2022, the SEC has yet to provide clear guidance, choosing to apply existing securities laws that Coinbase says are unsuitable for cryptocurrencies.